Latin America Economic Outlook
Latin America’s GDP growth is expected to trail the global average in 2026, continuing the pattern seen in recent years. Paraguay and Venezuela are the only economies forecast to grow above 3%, while most others are projected to expand by 1.0–3.0%. Bolivia’s GDP will shrink amid social unrest and fiscal consolidation. A strong El Niño is a downside risk.
Latin America Inflation
Year to date, inflation has reached high triple digits in Venezuela due to currency depreciation, double digits in Argentina and Bolivia, and 1.0–6.0% elsewhere. Since February, price pressures have increased across most economies, reflecting higher global energy costs. The three-tier inflation landscape is expected to remain firmly in place through the rest of 2026.
This chart displays Economic Growth (Real GDP, ann. var. %) for Latin America from 2010 to 2025.
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| Industrial Production (ann. var. %) | 7.7 | 2.2 | 0.1 | 0.2 | 0.5 |
| External Debt (% of GDP) | 42.6 | 37.7 | 34.9 | 34.4 | 36.0 |
| Fixed Investment (ann. var. %) | 16.3 | 4.9 | 4.2 | 2.3 | 2.3 |
| GDP per Capita (USD) | 8,308 | 9,374 | 10,482 | 10,621 | 11,049 |
| Economic Growth (Real GDP, ann. var. %) | 7.3 | 4.0 | 2.2 | 2.1 | 2.2 |
| Private Consumption (ann. var. %) | 8.3 | 5.2 | 2.6 | 2.9 | 2.6 |
| Inflation (CPI, ann. var. %, aop) | 10.2 | 15.6 | 18.5 | 24.8 | 7.9 |
| Public Debt (% of GDP) | 62.6 | 60.9 | 67.9 | 63.3 | 64.0 |
| Merchandise Exports (USD bn) | 1,273 | 1,473 | 1,454 | 1,506 | 1,606 |
| Merchandise Imports (USD bn) | 1,224 | 1,485 | 1,411 | 1,450 | 1,538 |
| Merchandise Trade Balance (USD bn) | 49 | -11 | 42 | 56 | 69 |
| Fiscal Balance (% of GDP) | -4.1 | -3.5 | -5.3 | -5.3 | -4.9 |
| Unemployment (% of active population, aop) | 9.5 | 7.1 | 6.2 | 5.8 | 5.5 |
| International Reserves (USD bn) | 913 | 854 | 888 | 902 | 1,011 |
| Current Account Balance (% of GDP) | -1.8 | -2.3 | -1.2 | -1.2 | -1.1 |
| Policy Interest Rate (%, eop) | 6.29 | 11.51 | 10.70 | 9.86 | 9.78 |